["The Manchester School, EarlyView. ", "\nABSTRACT\nThere are two problems with the view that cheaper capital caused a decline in the labor share: first, aggregate capital and labor are gross complements; second, the price of capital is roughly constant, worldwide. Taking seriously the composition of capital resolves both challenges. Though information and communications (ICT) capital is a small fraction of capital, it is highly substitutable with labor, and its user cost declined sharply. Distinguishing ICT and non‐ICT capital is empirically plausible and suggests that automation accounts for more than 1/4 of the global decline in the labor share, even if aggregate capital and labor are complements.\n"]